I didn't see the question you wrote on 11/24, sorry about that. Since your reel is so close to the compressor I would just put the regulator and separator at the tank like I did. If your reel was further from the compressor I would do it differently but I don't think that is needed in your case.
You won't be disappointed after the install, I'm not. I would map it out prior to install to make sure you have enough connections as you might need more that are supplied in the kit but your set up looks pretty straight forward. I ended up needing 2 more 90 degree fittings than were in the kit so I ordered more prior to install as I wasn't sure how I was going to run my lines.
The one thing you will for sure need is clamps to hold the line as there are none in the kit, these are the ones I used
http://www.homedepot.com/p/Gardner-...ack-PPC-1550UVB/100175900?keyword=ppc-1550uvb They come in a pack of 12 for like 2 bucks, worked perfect.
I did get a PM from someone but not you and since I can't post in the classified section I am taking the extra stuff back to HD today and going to exchange the fittings for some saw blades that I need to start making my bathroom vanity. You shouldn't need any help with the install as it's pretty straight forward but if you have any questions shoot me a PM